Norway's Knutsen Group has sold the 35,000-dwt Betty Knutsen (built 1999) for green demolition to Turkey, where the price being offered is less than half of what yards in the Indian subcontinent are quoting.
Knutsen director Oystein Emberland confirmed to TradeWinds the deal for a vessel that had been previously deployed in the company's contract of affreightment programme.
European and Scandinavian shipowners are required by law to dispose of their vessels at approved green recycling yards.
No price has been disclosed for the sale of the Betty Knutsen, which was due for a special survey this month.
In Turkey, the going rate is around $280 per ldt, while earlier this week prices being paid by demolition yards in India, Bangladesh and Pakistan had risen close to $600 per ldt due to a shortage of tonnage.
Knutsen has a track record of selling ageing tankers for demolition — rather than further trading — in order to renew its fleet. In 2017, it sold the 141,000-dwt Catherine Knutsen (built 1992) for green recycling for an undisclosed price.
Knutsen is a part-owner of Knutsen NYK Offshore Tankers. The firm is a leading player in the bow-loading shuttle tanker segment with a fleet of 30 ships.
Knutsen is controlled by the Seglem family, which also operate LNG carriers.
In another deal involving the Turkish market, Norway's Bergshav has sold the 1,900-cbm B Gas Commander (built 1996) for scrap. Again no price has been reported.
Leading cash buyer GMS has predicted that demolition prices may break what it calls the "mythical" $600 per ldt barrier due to a lack of ships.
However, demolition broker Ed McIlvaney has argued that the market will not support the $600 per ldt any time soon.
